Energy Consumption, Financial development and CO2 emissions in Pakistan
AbstractIn this study, we analyzed the effects of financial development, per capita real income, the square of per capita real income, per capita energy consumption and openness on per capita CO2 emissions in the context of Pakistan during 1971-2011. The bound F-test for cointegration yielded evidence of a long-term relationship among these variables. The results confirm the existence of an environmental Kuznets curve in Pakistan for both the short and long term. This finding indicates that at the initial stage of development, the level of CO2 increases with income, and after some threshold level of income, this relationship may change from positive to negative as more efficient infrastructure and energy-efficient technology are implemented during the development of the country. The findings of this study also reveal a significantly positive sign for the coefficient of financial development, suggesting that financial development has occurred at the expense of environmental quality. The findings of this study indicate that the key contributing factors of carbon emissions in Pakistan are income, energy consumption and financial development. In addition, the openness variable has no significant influence on carbon emission in either the short or long term.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 48287.
Date of creation: 2013
Date of revision:
EKC; Energy; CO2;
Find related papers by JEL classification:
- Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-20 (All new papers)
- NEP-CWA-2013-07-20 (Central & Western Asia)
- NEP-ENE-2013-07-20 (Energy Economics)
- NEP-ENV-2013-07-20 (Environmental Economics)
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